First Quarter 2021 - Supplementary Presentation - "Navigator Holdings Ltd. (NYSE:NVGS)"
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First Quarter 2021 – Supplementary Presentation
“Navigator Holdings Ltd. (NYSE:NVGS)”
Confidential
This presentation contains certain statements that may be deemed to be
“forward-looking statements” within the meaning of applicable federal
securities laws. Most forward-looking statements contain words that identify
them as forward-looking, such as “may”, “plan”, “seek”, “will”, “expect”, “intend”,
“estimate”, “anticipate”, “believe”, “project”, “opportunity”, “target”, “goal”,
“growing” and “continue” or other words that relate to future events, as
opposed to past or current events. All statements, other than statements of
historical facts, that address activities, events or developments that Navigator
Holdings Ltd. (“Navigator” or the “Company”) expects, projects, believes or
anticipates will or may occur in the future, including, without limitation,
acquisitions of vessels, the outlook for fleet utilization and shipping rates,
general industry conditions, future operating results of the Company’s vessels,
capital expenditures, expansion and growth opportunities, business strategy,
ability to pay dividends and other such matters, are forward-looking
statements. Although the Company believes that its expectations stated in this
presentation are based on reasonable assumptions, actual results may differ
any expectations or goals expressed in, or implied by, the forward-looking
statements included in this presentation, possibly to a material degree.
Navigator cannot assure you that the assumptions made in preparing any of
the forward-looking statements will prove accurate or that any long-term
financial goals will be realized. All forward-looking statements included in this
presentation speak only as of the date made, and Navigator undertakes no
obligation to update or revise publicly any such forward-looking statements,
whether as a result of new information, future events, or otherwise. In
particular, Navigator cautions you not to place undue weight on certain
forward-looking statements pertaining to potential growth opportunities or long-
term financial goals set forth herein.
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Confidential
HIGHLIGHTS & OUTLOOK
Financial Operational
• Best start to the year since Q1 2016 • Achieved Q1, 2021 TCE of $21,953 per day up 3%
relative to Q1, 2020 of $20,855 per day
• Fourth consecutive quarterly profit, since Q1, 2020
• Awarded four 12-month time charters with Mitsui to
• Net income was $2.8 million (earnings per share of $0.05) for the service new Canadian Pembina Terminal.
three months ended March 31, 2021
• Loaded the first cargo from the Repauno terminal in
• Achieved adjusted EBITDA $31.0 million for Q1, 2021 April 2021
• Terminal Facility fully drawn during the quarter, at $69.0 million • Ethylene tonnage exported through our
and converted into a five year term loan. Terminal CapEx is now Marine Export Terminal of approx. 102,880 tons for
complete. Q1, 2021
• Our cash and undrawn amounts available from our loan facilities • Executed a non-binding LOI with Ultranav for the
was approximately $122.8 million at March 31, 2021, with no loan cashless merger of their 18 vessel Ultragas LPG fleet
maturities until March 2022
• Navigator inaugural CSR report published
Outlook
• We are bullish on the Short Term & Medium Term Handy Sized market. This is underpinned by:
• Recovery in the US LPG / Petrochem exports following the US Gulf "Deep Freeze"
• Forward new build vessels are at historical lows
• Incremental demand from the three new U.S. export terminals now on stream
• We expect these factors will lead to a significant increase in forward utilisation and freight rates
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Confidential
FINANCIAL PERFORMANCE
Q4 Net Revenue & EBITDA $mm Q1, 2021 Adjusted Net Profit to vessel performance
Net Operating Revenue Adjusted EBITDA
$69.3m $66.5m
$67.3m
$62.3m $62.8m $62.7m $63.7m
$59.9m
$44.7m
$41.9m
$34.6m $35.9m
$33.5m $30.5m $31.0m
$27.1m $25.5m
$20.7m
Q1 2021
Q1 2021 vessel Reported Net
Net Income profit
Foreign exchange Profit on Terminal
Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020 Q1 2021
Movement Joint venture
Q1, 2021 Movement in Adjusted EBITDA $mm
Q1 2020 Q1 2021
Ves sel Operating Ves sel Termi nal Operating
Adj Adj
Income Depreciation Income
EBITDA EBITDA
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Confidential
INCOME STATEMENT
Navigator Holdings Income Statement $000’s
Three months ended
March 31,
2020 2021
Operating Revenue 81,257 85,748 Q1 2020 Q1 2021
Operating expenses:
Weighted average number of vessels 38 38
Brokerage commissions 1,255 1,193
Voya ge expenses 17,544 19,748 Ownership days 3,458 3,420
Ves sel operating expenses 27,406 26,992 Available days 3,432 3,350
Depreciation and amortization 19,210 19,273 Operating days 3,055 2,956
General a nd a dministrative costs 6,508 6,280
Fleet utilization 89.0% 88.2%
Other Income — (72)
Average Daily Results:
Tota l operating expenses 71,923 73,414
Operating income 9,334 12,334 Time charter equivalent rate $ 20,855 $ 21,953
Daily vessel operating expenses $ 7,925 $ 7,892
Forei gn currency ga in on s enior s ecured bonds 11,417 8
Unrea lized l oss on derivative i nstruments (13,961) 547
Net i nterest expense (11,321) (8,929)
Income/(loss) before income taxes (4,531) 3,960
Income taxes (168) (145)
Sha re of result of joint venture (3,041) (606)
Net income/(loss) (7,740) 3,209
Net i ncome a ttributable NCI (422) (389)
Net income/(loss) attributable to NVGS (8,162) 2,820
EPS attributable to NVGS
Ba s ic & Diluted $ (0.14) $ 0.05
EBITDA 22,959 31,556
Adjusted EBITDA 25,503 31,001
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Confidential
BALANCE SHEET AND LIQUIDITY
Navigator Holdings Balance Sheet $000’s March 31, 2021 - Cash & Liquidity $million
Total Liquidity,
December 31, 2020 March 31, 2021 $122.9
Assets $ USD $ USD
Cash and cash equivalents 59,271 85,249
Other current assets 77,267 74,732 $37.6 Undrawn, $37.6
Total current assets 136,538 159,981
Vessels, net 1,545,688 1,529,364
- -
Investment in Terminal JV 148,665 151,210
Other assets 8,517 7,535
Total assets 1,839,408 1,848,090 Excess Cash,
$42.4
Liabilities & Equity
Net current portion of debt 65,663 83,541
Other current liabilities 41,560 47,533 $85.2
Total Current Liabilities 107,223 131,074
Net long term debt 781,551 763,616
Minimum cash
Other non-current Liabilities 8,239 7,415 requirement -
Bank covenant,
Equity 942,395 $42.8
945,985
Total liabilities and Equity 1,839,408 1,848,090
Cash & Cash Equivalents Undrawn Vessel Facilities Total Liquidity
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Confidential
DEBT PROFILE
Debt Maturities per year $mm
$107 million facility $100 million Bond $160.8 million facility $278 million facility
$210 million facility $220 million facility NOK 600 million Bond
Debt capitalization & LTV levels $mm
$72m Loan to
As of December 31, 2020 Actual Debt
Value %
Vessel Net Book Value 1,545.7 708.6 45.8%
Broker assessment value adj (118.3) - -
Broker assessed values 1,427.4 708.6 49.6%
$66m
Terminal net book value 148.7 141.6 95.2%
Total Assets 1,576.1 850.2 53.9%
$100m
Total Shareholders’ equity 942.4
$31m
$144m Total capitalization 1,792.6
Debt / Capitalization 47.4%
$66m
$50m $54m
2021 2022 2023 2024 2025
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Confidential
U.S. NGL FUNDAMENTALS
U.S. NGL production, including ethane, rebounded U.S. domestic ethylene price showing a path to normality
from the impact of the Texas Freeze and widening arbitrage supported by ethane values
US NGL production and LPG exports US /Europe/Asia ethylene pricing & U.S. ethane
250,000 70,000 $1,600 $1,600
225,000
$1,400 $1,400
60,000
200,000
$1,200 $1,200
175,000 50,000
$1,000 $1,000
150,000
40,000
‘000 Barrels
‘000 Barrels
USD pmt
USD pmt
125,000 $800 $800
30,000
100,000
$600 Texas-Freeze$600
75,000 20,000
$400 $400
50,000
10,000 $200
Hurricane Laura $200
25,000
- - $- $0
Axis Title
U.S. NGL production, excluding ethane (Thousand Barrels)
Ethylene CFR FEest Asia USD/t US Ethane Feedstock
U.S. Ethane production (Thousand Barrels)
U.S. LPG exports (Thousand Barrels) RH Axis Ethylene CIF NWE Ethylene del USGC pipeline USD/t
USD/t
Source: EIA Source: Argus
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Confidential
ETHYLENE EXPORTS
FULLY OPERATIONAL AND CONNECTED TO THE INDUSTRY
Enterprise & Navigator JV Ethylene export terminal is fully operational
with annual nameplate capacity of 1M metric ton throughput
The facility is connected to the majority of U.S. Gulf-coast ethylene
producers via EPD’s robust pipeline and storage infrastructure
93% of ethylene transported by Navigator went Transpacific to Asia during
2020 compared to 74% YTD 2021 with the remainder to Europe
U.S. Ethylene Exports
120
Thousands
Targa ENE
100
Metric Tons Exported
80
60
40
20
0
Axis Title
Navigator Atlas loading 11,500mts ethylene – the first from the cryogenic tank during December 2020
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Confidential
PROJECTS IMPACTING HANDY SIZE SEGMENT
4Q 2020 – P HASE 2 - M ORGAN’ S P OINT ETHYLENE EXPORT -
2H2021: ETP M ARCUS H OOK MEII & ME2X COMPLETION
1,000,000 MTS P .A
I NAUGURAL MEII ETHANE L OADING
ME1 70,000 B PD
F ULLY R EFRIGERATED ETHYLENE ENABLING THROUGHPUT MEII 275,000 B PD
EQUATING TO 6-7 CARGOES PER MONTH ME2X 250,000 BPD
1H2021: R EPAUNO EXPORT T ERMINAL, NJ 2Q2021: P EMBINA P RINCE R UPERT, BC, EXPORT T ERMINAL
R A IL-TO-SHIP AMBIENT LPG EXPORT FACILITY CATERING R A IL-TO-STORAGE & SHIP AMBIENT LPG EXPORT FACILITY
FOR SEMI-REFRIGERATED VESSELS C ATERING FOR SEMI-REFRIGERATED VESSELS
~20,000 BPD T HROUGHPUT ~25,000 BPD T HROUGHPUT
3-4 AMBIENT HANDY LPG CARGOES PER MONTH 4-5 AMBIENT HANDY LPG CARGOES PER MONTH
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ConfidentialENTERPRISE NAVIGATOR JV ETHYLENE EXPORT TERMINAL
▪ >1M mts Throughput Capacity ▪ 60,000cbm storage tank ▪ 94% Committed on 5-7 year Term ▪ Incremental Handy demand 12+ vessels
December 2020
Phase two
completion & first
lifting from tank June 2020
World’s largest
ethylene cargo
exported
December 2019
Phase one
completion & first
lifting from
refrigeration unit
May 2018 The terminal is connecting our ethylene fleet with our customers
Announcement
of terminal Finance Operations
January 2018 location
Announcement of Expected to generate EBITDA Delivered safely on time &
FID of $20-25M per annum under budget
July 2017
Announcement Capabilities
of 50/50 JV to >1Mmts +125mts per >1,000mts per Two docks
build terminal throughput hour chiller hour load rate
capacity
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ConfidentialPRINCE RUPERT LPG EXPORT TERMINAL IN B.C. NOW OPERATIONAL
INCREMENTAL SUPPLY FOUR NVGS VESSELS ON CHARTER
The west-coast Canadian export terminal commenced operations in April By middle of June, Navigator will have delivered four vessels* on time
2021 with a design capacity of 25,000bbls day throughput of charters enabling well-to-wake logistics for LPG produced in Alberta,
ambient LPG. Canada, to international consumers in Asia.
Its location provides competitive seaborne logistics to customers in the The incremental seaborne demand from this individual project requires
Pacific compared to exports from the U.S. Gulf (12 days sailing vs 30 days 6.3% of existing handysize semi-refrigerated capacity, tightening
sailing via Panama Canal). supply/demand balances.
*Navigators’ Centauri, Ceres, Ceto and Phoenix are the chartered vessels for this project
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ConfidentialREPAUNO LPG EXPORT TERMINAL, NJ, U.S. NOW OPERATIONAL
INCREMENTAL SUPPLY POSITIVE FREIGHT IMPACT & UNREALISED CAPACITY
Our Luna Pool collected Repauno's first handysized semi-refrigerated
The New Jersey, U.S., Repauno LPG export terminal was commissioned
cargo in April 2021 followed by two similar cargoes in May,
during 1Q, 2021 and is operational.
generating incremental demand during this period.
The nameplate capacity of 20,000bbls per day of ambient rail-to-ship
The terminal ramp-up is now ~two cargoes per month, utilising ~50% of
LPG will bring incremental demand for up 3 to 4 handysize semi-
the design capacity, with scope for additional incremental throughput.
refrigerated cargoes per month, connecting Marcellus & Utica producers
with international customers in the Atlantic, including west coast Africa.
We will continue to encourage additional volumes to move through this
new facility, as every additional cargo is an earning opportunity.
Repauno's berth, loading arm and rail connectivity, www.repauno.com
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ConfidentialON TRACK ROR RECORD NVGS SHIPMENTS FROM MARCUS HOOK
MARCUS HOOK VOLUMES ON THE RISE HISTORIC MARCUS HOOK EXPORTS ON NAVIGATOR VESSELS
Jan-May 2021 export cargoes on Navigator vessels are exceeding 400
Thousands
expectations.
LPG
Navigator’s Marcus Hook full-year NGL volumes are heading towards a 350
five year high. Ethane
With potential additional incremental demand expected when ME2/ME2X 300
reaches design throughput / comes onstream later in the year*.
250
Mts exported
200
150
100
50
0
2016 2017 2018 2019 2020 Jan-May
* ETP’s 1Q21 earnings call 2021
Confidential15,000-25,000 CBM HANDYSIZE DEMOGRAPHICS
Vessel Age Profile & Order Book
Order Book 0-5 y/o 6-10 y/o 11-15 y/o 15-20 y/o 20+ y/o
70%
58%
60% 55%
48%
50%
41%
Age group%
40% 35%
29% 30%
30% 25%
21% 21% 22% 20%
20% 17% 17% 17% 17% 17% 16% 18%
13%
8% 8% 8%
10% 4% 5% 5% 3%
0%
0%
2001 2006 2011 2016 2021
LPG Handysize Global Fleet Ethane/Ethylene Global Fleet >15,000 cbm
Owner Semi Ref. Fully Ref. Total Existing & Newbuild
Owner Total
Handysize Midsize VLEC
Navigator Gas 17 6 23 Navigator Gas 10 4 - 14
Ultragas 8 - 8 Evergas - 8 2 10
Naftomar 3 4 7 Solvang 8 - - 8
Beneleux 5 - 5 Reliance - - 6 6
Petredec 2 2 4 Petredec 8 - - 8
Schulte 4 - 4 Pacific Gas 5 - - 5
Stealth Gas 4 - 4 Harpain 4 - - 4
Yara 3 - 3 Hartmann - 3 - 3
Pacific Carriers 3 - 3 Other 3 - - 3
Harpain 1 - 1
Other 13 10 23
Total 63 22 85 Total 38 15 8 60
* Handysize FR/SR/ETH vessels on the w ater Source: Fearnleys, Clarksons, Gibsons 2020
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